• New businesses boost profits
  • Beer sales strong in many markets
  • Building brewery in China
Asia Pacific Breweries roars to FY profits jump

Asia Pacific Breweries roars to FY profits jump

Heineken's joint venture with Fraser & Neave, Asia Pacific Breweries, has reported strong rises in beer sales and profits for its fiscal year.

Asia Pacific Breweries (APB) said this week that net sales leapt by 25.6% for the 12 months to the end of September, to S$2.51bn (US$1.94bn). Net profits leapt by 62.5% on the previous year, to S$356.2m, while operating profits came in 56% higher at S$470.5m.

The Tiger beer brewer's CEO, Roland Pirmez, said that the group's new beer divisions in Indonesia and New Caledonia boosted growth alongside a strong organic performance. "Organic growth was driven by a continuing robust beer demand in Vietnam and improved sales in New Zealand," he said.

He also highlighted a 48% rise in pre-tax profits in the firm's IndoChina business, which includes the hotly-tipped Vietnam market and contributes to around half of APB's annual pre-tax profits. APB's newly-acquired businesses, Mulit Bintang Indonesia and Grande Brasserie de Nouvelle Caledonie, contributed to 11% of the group's pre-tax profits for the year.

"The completion of the acquisition of the businesses in Indonesia and New Caledonia and the disposal of the India businesses have resulted in a profound improvement in the geographical mix of the group’s operations," said APB. "The new businesses are performing in line with expectations."

It said that the group as a whole "continues to trade well" but warned that it is "sensitive to currency movements".

APB laid the foundations for expansion in several markets during the year. It has commissioned a new bottling line in Vietnam and has installed a brewhouse and canning line at the Lae brewery in Papa New Guinea. The brewer is also close to completing the construction of a brewery in Guangzhou in China, where the group broke even for the first time during its last fiscal year.